Bracks reversal on taxi cuts softens blow to the disabled

Premier Steve Bracks yesterday bowed to pressure from his back bench and community groups by softening cuts to a taxi program used by thousands of disabled Victorians.

He admitted his Government's decision to impose a cap of $550 a year on almost all users of the Multi-Purpose Taxi Program was a mistake, and announced that a wide range of disability groups would now be exempt from the cap, which will be imposed from July.

"I think we were too harsh and I fully admit that," he said. "I think the savings that we sought were greater than I believe we needed and probably hurt too many people."

Under the softened rules, people with vision impair-ment, intellectual impairment, paralysis, organ disorders and dementia join wheelchair users in having unlimited free taxi travel if they qualify for the program. The backdown will cost the Government at least $20 million over four years.

The fee provided to taxi drivers who pick up wheelchair users will rise from $6.60 to $10 and the $550 cap has also been linked to inflation.

Cuts to taxi subsidies were announced late last year, with the Government claiming the cost of the program had blown out to an unsustainable $43 million annually.

But it was revealed that up to $10 million a year was being lost in rorts by some taxi drivers and users of the scheme.

Departmental sources said a police investigation into the fraud had yet to begin, but the Government said 22 drivers had had their taxi licences suspended or revoked in the past year for fraud.

Mr Bracks's backdown comes after weeks of lobbying by dozens of Labor MPs, some of whom described the decision to slash taxi subsidies as one of the worst made by the Government.

Community and disability groups welcomed the changes, but were concerned that 45 per cent of those using the scheme would still be subject to the cap.

Victorian Council of Social Service chief executive Cath Smith said people with skin conditions, arthritis and skeletal disabilities - many of whom were elderly - would be stuck in their homes because of the cap.

She said affected groups were concerned by new means-testing arrangements, as it appeared that low-income health-care card holders were ineligible to apply.

Gawith Villa, a Melbourne support centre for the intellectually disabled, said Mr Bracks had acted courageously by admitting the Government's mistake.

State Opposition Leader Robert Doyle said the Government's treatment of the disabled had been terrible and that it would still be cutting $30 million from the scheme over four years.